NAME: NAME: DATE: HSL 643 Spring 2021 William Leonelli, MS, CPA Final Exam This exam consists of definition questions, short answer questions and two essays. In your answers, please be sure to address...

NAME:
NAME:
DATE:
HSL 643

Spring 2021
William Leonelli, MS, CPA
Final Exam
This exam consists of definition questions, short answer questions and two essays. In your answers, please be sure to address the question asked within the context of the course. If you are not certain of an answer, please make an attempt as I will award partial credit. Please provide answers in accordance with the length of each group assigned. Good luck!
Define and briefly explain the significance of each of the following eight words or phrases in 1 or 2 sentences. (5 points each)
1. Liabilities: Liabilities can be defined as the debt of the company. In other word it can be understood as the sum owed by the entity such as bank loan, wages owed, etc.
2. Assets/net assets: Asset is a resource which is having economic value and it is expected that it will yield future benefit to the entity.
3. Revenues: It can be defined as the total amount of income generated by the entity from the sale of goods and services in relation with the primary operations of the entity.
4. Break even analysis: It is the analysis of the break-even point of the entity i.e. the point at which the entity will be able to cover all its costs.
5. Accounts payable/receivable: Accounts receivables refers to the amount of money that the has been owed to the entity for the goods or services which has not been paid and accounts payable is the amount that the entity owes to other businesses.
6. Maximum efficiency: It defines the level of performance with the use of the least amount of input to achieve maximum amount of output.
7. Risk Management: It is the process in which the threats to the capital and earnings of the organizations are identified, assessed and controlled.
8. Auditing (program/financial): Auditing can be understood as the process of examining the financial record of the entity for expressing the opinion on the financial statements.
Please answer each of the following four short answer questions with one or two brief paragraphs (7.5 points each).
1. Identify the four forecasting techniques discussed. Describe two of the techniques in detail.
The forecasting techniques helps the entity in planning the future. The four forecasting technique used are:
· The Delphi Technique: Using this technique group of field experts responds to a series of questionnaires. In this results of first questionnaire is compiled and second questionnaire is on the basis of the result of the first one and this process continues till the expert have narrow range of opinion.
· Time series analysis: It measures the data collected over time for identifying the trends and the data can be taken over any interval.
· Subjective forecasting approach
· Scenario writing to generate different outcomes
2. Please define and discuss the differences between fixed, variable and step costs. Please provide examples of each.
The variable cost can be defined as the cost of production which varies with the amount of output produced such as direct materials, cost of labour and many others. On the...